Asked by Aidan Packer on Jul 06, 2024
Verified
To be eligible for Chapter 13,debtors must first meet with an approved nonprofit credit counselor and have unsecured debts of less than $400,000.
Nonprofit Credit Counselor
An advisor typically affiliated with a nonprofit organization who provides guidance on managing debt, budgeting, and improving personal financial health.
Chapter 13
A form of bankruptcy that allows individuals earning a regular income to develop a plan to repay all or part of their debts over time, usually three to five years.
Unsecured Debts
Obligations for which the borrower does not provide collateral, making them riskier for lenders.
- Recognize the criteria for eligibility across multiple bankruptcy filing categories.
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Learning Objectives
- Recognize the criteria for eligibility across multiple bankruptcy filing categories.
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